HSA vs FSA: what each does to your paycheck
An HSA is yours to keep and needs a high-deductible health plan; a health FSA works with any plan but most of it is use-it-or-lose-it. Through payroll, both come out before income tax and FICA: on a $60,000 salary in Texas, $100 a paycheck lowers take-home by $80.35, because $19.65 of it would have gone to tax.
| Into the account | Take-home per check | Take-home drops by | Federal income tax saved | FICA saved | Total tax saved per check | Tax saved per year |
|---|---|---|---|---|---|---|
| $50 a check | $1,897.89 | -$40.18 | $6.00 | $3.82 | $9.82 | $255 |
| $100 a check | $1,857.72 | -$80.35 | $12.00 | $7.65 | $19.65 | $510 |
| $150 a check | $1,817.54 | -$120.53 | $18.00 | $11.47 | $29.47 | $766 |
Pick by plan first, then by limit
The HSA decision starts with your health plan. Only a high-deductible plan qualifies: for 2026 that means a deductible of at least $1,700 for self-only coverage or $3,400 for family coverage, and an out-of-pocket maximum no higher than $8,500 or $17,000 (Rev. Proc. 2025-19). If your plan qualifies, the HSA limit is $4,400 self-only or $8,750 family, and people 55 or older may add $1,000.
If your plan is not a high-deductible plan, the health FSA is the option. The 2026 salary-reduction limit is $3,400 (Rev. Proc. 2025-32), and a plan that allows a carryover may carry up to $680 into the next year. Ask your plan which rule it uses, and its spending deadline, before you choose an amount.
What it does to the paycheck
Payroll deductions for an HSA or FSA through a cafeteria plan come out before federal income tax and, for the HSA, are not generally subject to Social Security or Medicare tax (Publication 969; Publication 15-B). That is why take-home falls by less than the contribution. The first table shows the engine result at three amounts.
An HSA contribution you make yourself, outside payroll, is deducted on your tax return but does not recover the FICA already withheld. The same gross salary through payroll is the better route when it is offered.
The dependent care FSA is a third option
If you pay for child or other dependent care so you can work, a dependent care FSA allows $7,500 a year for 2026 ($3,750 if married filing separately), up from $5,000, per Publication 15-B. The same expenses cannot also be claimed for the child and dependent care credit, so compare the two before you elect the full amount (IRS child and dependent care credit).
California is different
California does not follow the federal HSA rules, according to the Franchise Tax Board (Schedule CA instructions), so an HSA contribution does not lower California taxable wages. The pre-tax field in this site’s calculator lowers California tax as well, which would overstate the saving for an HSA, so the tables here use Texas.
Open enrollment checklist
1. Check whether your health plan is a high-deductible plan. 2. Add up expected medical costs you know about, and keep an FSA election below that. 3. Pick a per-check amount from the max-out table, not a yearly guess. 4. If you choose an HSA, skip a general-purpose health FSA. 5. For 2027 HSAs the IRS has published $4,500 self-only and $9,000 family (Rev. Proc. 2026-24). Estimates only, not tax advice. Next: the paycheck deduction calculator for your own numbers, or the 401(k) limit page.
| HSA | Health FSA | Dependent care FSA | |
|---|---|---|---|
| Who can use it | Anyone covered by a high-deductible health plan and no disqualifying other coverage | Anyone whose employer offers it | Anyone whose employer offers it and who pays for care so you can work |
| 2026 limit | $4,400 self-only, $8,750 family, plus $1,000 at age 55 | $3,400 of salary reduction | $7,500 ($3,750 if married filing separately) |
| Unused money | Carries over every year | Plan may allow a carryover of up to $680 or a grace period; the rest is forfeited | Check your plan’s deadline; unused money is generally forfeited |
| Who owns it | You: an account you set up with a trustee that stays with you if you change jobs | Your employer’s cafeteria plan | Your employer’s cafeteria plan |
| Through payroll | Not generally subject to Social Security or Medicare tax | Pre-tax under a cafeteria plan | Pre-tax under a cafeteria plan |
| Plan requirement | High-deductible plan: deductible at least $1,700 self-only or $3,400 family, out-of-pocket maximum no more than $8,500 or $17,000 | None. A general-purpose health FSA generally blocks HSA contributions | None |
| Account | 2026 limit | Per check | Tax saved per check | Take-home drops by |
|---|---|---|---|---|
| HSA, self-only | $4,400 | $169.23 | $33.26 | -$135.97 |
| HSA, family | $8,750 | $336.54 | $66.14 | -$270.40 |
| Health FSA | $3,400 | $130.77 | $25.70 | -$105.07 |
| Dependent care FSA | $7,500 | $288.46 | $56.69 | -$231.77 |
Watch it worked through
- HSA or FSA? One Rule Decides (YouTube Short)
Paycheck Zip videos use the same calculator as this page. Figures in a video are from the day it was made; the page is kept current.
Sources
- IRS, Revenue Procedure 2025-19 (2026 HSA limits and HDHP thresholds)
- IRS, Revenue Procedure 2025-32 (2026 brackets, standard deduction, child tax credit)
- IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans
- IRS Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits (cafeteria plans, dependent care $7,500)
- IRS, Revenue Procedure 2026-24 (2027 HSA limits)
- California Franchise Tax Board, Schedule CA (540) instructions: California does not conform to federal HSA rules
Keep reading
Questions
What is the main difference between an HSA and an FSA?
An HSA needs a high-deductible health plan, belongs to you and carries over every year. A health FSA works with any plan your employer offers, but you generally lose what is left unless your plan allows a carryover of up to $680 or a grace period.
Can I have an HSA and an FSA at the same time?
Usually not a general-purpose health FSA. IRS Publication 969 says a person covered by a health FSA that reimburses medical expenses generally cannot contribute to an HSA. A limited-purpose FSA (dental and vision) is an exception, and a dependent care FSA does not count as health coverage.
How much does a $100 paycheck contribution save?
On a $60,000 salary in Texas, $19.65 a check in tax, so take-home falls by $80.35 instead of $100.00. That is federal income tax of $12.00 plus $7.65 of Social Security and Medicare. Your own number depends on your bracket and state.
What are the 2026 limits?
HSA: $4,400 self-only and $8,750 family, plus $1,000 at 55 or older. Health FSA: $3,400. Dependent care FSA: $7,500, or $3,750 if married filing separately.
What are the 2027 HSA limits?
The IRS has published them: $4,500 self-only and $9,000 family (Rev. Proc. 2026-24). The 2027 health FSA limit was not yet published when this page was updated.
Does California treat an HSA the same way?
No. California does not follow the federal HSA exclusion, so an HSA contribution does not lower your California taxable wages. The calculator’s pre-tax field lowers California tax too, so it overstates the saving for an HSA in California. The examples on this page use Texas for that reason.